Please note! Course description is confirmed for two academic years, which means that in general, e.g. Learning outcomes, assessment methods and key content stays unchanged. However, via course syllabus, it is possible to specify or change the course execution in each realization of the course, such as how the contact sessions are organized, assessment methods weighted or materials used.

LEARNING OUTCOMES

By the end of the course students will be able to show detailed understanding of the pricing of various types of derivative instruments. Students will understand how corporations use derivatives in practice to hedge financial risks, the concept of credit risk and credit derivatives, the concept of implied volatility and volatility derivatives.

Credits: 6

Schedule: 20.04.2022 - 03.06.2022

Teacher in charge (valid for whole curriculum period):

Teacher in charge (applies in this implementation): Katja Ahoniemi

Contact information for the course (applies in this implementation):

CEFR level (valid for whole curriculum period):

Language of instruction and studies (applies in this implementation):

Teaching language: English. Languages of study attainment: English

CONTENT, ASSESSMENT AND WORKLOAD

Content
  • valid for whole curriculum period:

    Derivatives pricing, risk management, credit risk and credit derivatives, implied volatility and volatility derivatives

Assessment Methods and Criteria
  • valid for whole curriculum period:

    50% exam
    50% assignments

Workload
  • valid for whole curriculum period:

    Contact teaching 34h
    Independent work 125h
    Exam 3h

DETAILS

Study Material
  • valid for whole curriculum period:

    Lecture notes, exercises, cases, academic articles, and textbook: John C. Hull: Options, Futures and Other Derivatives, 10th edition

    (E-book)

    Availability

    Learning center

    Availability

Substitutes for Courses
Prerequisites
SDG: Sustainable Development Goals

    1 No Poverty

    8 Decent Work and Economic Growth

FURTHER INFORMATION

Further Information
  • valid for whole curriculum period:

    Teaching Period:

    2020-2021 Spring V

    2021-2022 Spring V


    Course Homepage: https://mycourses.aalto.fi/course/search.php?search=28E35400


    Registration for Courses: In the academic year 2021-2022, registration for courses will take place on Sisu (sisu.aalto.fi) instead of WebOodi.


    The course is offered to BIZ students only. A maximum of 70 students can be accepted to the course.

    - Students at Aalto Finance M.Sc. programme (i.e. who have graduated as B.Sc.) will be guaranteed a seat on Finance M.Sc. courses. Finance M.Sc. students re-taking the course (grade already registered in Sisu) will not be prioritized and can participate only if there are places remaining.
    - CEMS students are similarly guaranteed a seat for Finance M.Sc. courses, which have been designated as CEMS courses.


    Remaining seats are prioritized as follows:
    1. Finance M.Sc. exchange students from other universities
    2. Aalto Finance B.Sc. students with a finished B.Sc. thesis (registered in transcript of records)
    3. All other M.Sc. students at the School of Business


    Please follow carefully the registration deadlines of the courses and exams! Missing registration deadline automatically foregoes a guaranteed seat for Finance M.Sc. courses and puts prospective student at the bottom of the prioritization list.